KLA-Tencor Appoints New President of KLA-Tencor Europe
SAN JOSE, Calif., May 10, 2001 - KLA-Tencor Corp. (Nasdaq: KLAC) today announced that Teradyne Inc. (NYSE: TER), the world's largest supplier of automated test equipment (ATE) for the semiconductor industry, will engage in a pilot program to incorporate KLA-Tencor's e-diagnostics technology in its latest semiconductor test products. When integrated into Teradyne's tools, this technology will enable Teradyne field and factory engineers to provide real-time, on-line service and applications support to its customers. As a result, Teradyne's customers can attain such benefits as increased test system availability and faster production ramp through more efficient transfer of test programs.

KLA-Tencor's e-diagnostics technology is the foundation of the company's iSupport™ program, which enables KLA-Tencor technical experts to remotely access KLA-Tencor tools at customer sites and operate them in real time to diagnose and resolve problems when they occur. This is accomplished through a secure, on-line connection that is controlled by the customer at all times. iSupport increases tool uptime, enabling chipmakers to achieve significantly lower tool cost of ownership, as well as higher fab efficiency-two critical issues facing both integrated device manufacturers and foundries as they migrate to 300 mm.

According to G. Dan Hutcheson, president of VLSI Research Inc., based in San Jose, the continuing trend toward greater complexity in the semiconductor manufacturing process and the adoption of 300 mm have made minimizing tool cost of ownership one of the biggest priorities in the semiconductor industry. "Chipmakers and equipment manufacturers alike are looking for innovative methods to help improve overall fab and equipment efficiency to stem rising manufacturing costs. E-diagnostics is one of the methods needed to address this challenge. Getting a power player like Teradyne to integrate KLA-Tencor's e-diagnostics technology into their ATE systems is proof that KLA-Tencor has been right on target in providing what chipmakers need. This is a huge step forward in making their iSupport program the industry standard for e-diagnostics."

"With the cost, time and labor that goes into making a semiconductor, chipmakers need high-performance, automated test systems that are highly productive to ensure the final product functions according to spec," stated Brian Amero, e-diagnostics product manager at Teradyne. "We are constantly striving to provide our customers with the most innovative test solutions at the lowest cost of ownership to help them achieve higher yields and maximize profitability. We chose to partner with KLA-Tencor because of their leadership in e-diagnostics and their ability to rapidly adopt their technology to our tool set. This will enable us to respond to our customers' product support needs much more rapidly and help improve their bottom line."

"Since its introduction last year, our iSupport program has been adopted by 13 of the top chipmakers worldwide," stated Mike Allison, general manager of KLA-Tencor's Worldwide Support Operations. "Customer data has shown that more than 85 percent of unscheduled service calls can be assisted online, and one-third of unscheduled calls can be completely resolved online, with iSupport. By providing our e-diagnostics technology to leading equipment suppliers like Teradyne, we can make even greater progress in helping our mutual customers minimize their manufacturing costs."

About Teradyne: Teradyne (NYSE: TER) is the world's largest supplier of automatic test systems and high performance interconnection systems for the electronics, telecommunications and Internet industries. Teradyne products are used to test semiconductors, printed circuit board assemblies, telephone lines and broadband networks. Teradyne's backplane assemblies and high-density connectors are used in the communications and computing systems central to the Internet infrastructure. In 2000, the company had sales of $3.0 billion and year-end headcount was over 10,000 employees.

iSupport is a trademark of KLA-Tencor.

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the company has sales and service offices around the world. An S&P 500 company, KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC.

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